Scg Pipeline Inc.

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 11/01/2003, Docket: RP03-611-000, Status: Effective

Original Sheet No.65 Original Sheet No.65 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

(b) All bids submitted during the open season shall be submitted to Pipeline

electronically through the Pipeline's Internet Web Site. Upon conclusion of

the bidding period, Pipeline shall evaluate the bids in accordance with

Section 4.3.

(c) If Pipeline is willing to accept a bid, Pipeline shall, no later than 15

days after the close of the bidding period, notify Shipper of the bid having

the highest Net Present Value (“NPV”). Shipper shall have 5 days after

receiving notice to notify Pipeline as to whether it will match the bid having

the highest NPV and longest term (up to five years). If the Shipper elects to

exercise its Right of First Refusal to match the bid with the highest NPV it

must execute a new Service Agreement containing the terms of that bid, which

new Service Agreement shall succeed the prior agreement following its

expiration; provided however, that Shipper shall not be required to pay any

rate higher than the maximum applicable rate.

(d) If Shipper does not exercise its Right of First Refusal, Pipeline may

execute a Service Agreement with the entity submitting the bid with the

highest NPV.

(e) If Pipeline receives no acceptable bids on the capacity, the Shipper may

continue to receive service at the maximum rate for the term elected by the

Shipper or such other rate and/or term as agreed to by Pipeline. A Shipper

who continues service under such basis shall retain its Right of First Refusal

only if the resulting agreement is a Long Term Service Agreement.

4.3 Net Present Value Standard. Pipeline shall award capacity for bids

received during the open season to Shippers that meet Pipeline’s

creditworthiness standards and whose bids, based upon Pipeline’s

determination, have the highest NPV. The NPV is the discounted cash flow of

incremental revenues per dekatherm to Pipeline produced, lost or affected by

the requests for service and shall be based upon such factors as the term,

quantity, date on which the requested service is requested to commence, and

other factors determined to